LOS ANGELES _ Walt Disney Co. delivered stronger than expected profits in the first quarter _ thanks partly to a federal tax cut _ but its revenue dipped as the Burbank company saw continued declines at its ESPN cable channels and ABC broadcast network.
The Burbank company reported net income of $4.42 billion, up 78 percent from a year earlier, boosted by a $1.6 billion one-time tax benefit from the new federal income tax legislation.
Analysts had predicted earnings per share of $1.61 on revenue of $15.5 billion, according to FactSet, and Disney delivered adjusted per-share earnings of $1.89 on revenue of $15.4 billion.
Revenue rose 4 percent, but the company missed on analysts' expectations for sales.
Disney's earnings report comes amid a period of turbulence for global markets _ on Monday the Dow Jones industrial average plunged 1,175 points _ and the company's performance is sure to be scrutinized by anxious investors.
Shares of Disney rose 1.4 percent in regular trading to $106.17. In the after-hours session, the stock was up about 1 percent.
The media networks unit saw its operating income decline year-over-year for the seventh consecutive quarter.
The unit _ whose crown jewel is ESPN _ reported operating income of $1.2 billion, a drop of 12 percent from a year earlier.
Within the unit's cable networks group, segment operating income declined 1 percent to $858 million. Disney attributed the drop, in part, to declines at ESPN, which experienced a loss in subscribers.
The unit's broadcast group, which includes ABC, posted segment operating income of $285 million, a decrease of 25 percent. Disney has continued to face ratings struggles at the ABC television network, fewer syndication hits from its television studio and lower revenues at TV stations.
Disney's film studio posted operating income of $829 million, off 2 percent from a year earlier. The unit benefited from the strong performance of "Star Wars: The Last Jedi," which debuted in mid-December and has grossed more than $1.3 billion worldwide, but was squeezed by a decrease in home entertainment results.
The company's consumer products and interactive unit delivered operating income of $617 million, a decrease of 4 percent. The parks and resorts business was a bright spot with operating income increasing 21 percent to $1.35 billion during the quarter.
Just before Disney released its earnings report, Disney announced that it had tapped "Game of Thrones" creators David Benioff and D.B. Weiss to write and produce a new series of "Star Wars" films. Disney said those films, which do not have release dates, would be separate from another new "Star Wars" trilogy that is being developed by filmmaker Rian Johnson, the writer-director of "The Last Jedi."
Disney executives will discuss the earnings report _ and perhaps the "Star Wars" news _ on a conference call with analysts Tuesday afternoon.
During the teleconference, analysts are likely to focus on Disney's $52.4-billion acquisition of film and TV assets from 21st Century Fox Inc., a pending deal that was announced in December and is subject to regulatory approval. Expect analysts to pepper Disney Chief Executive Robert Iger with questions about the pact.
